As a business owner, you know what it takes to stay at the top of your game. It takes tenacity, dedication, drive, and knowing how to reduce your business’ taxes. Regardless of your personal feelings on the subject of taxes, they are part and parcel of the business world. Paying attention to the tax laws, opportunities, and variances is a vital part of your success. There are some fiscally beneficial tax options to take advantage of that will help both you, your staff, and your entire business.
Utilize the Work Opportunity Tax Credit.
The Work Opportunity Tax Credit, more commonly known as WOTC, is a federal tax credit that you, as an employer, can take advantage of. The WOTC is an American program that aids businesses in finding employees from a specifically marginalized or targeted group whilst benefiting from the available tax credit. It is a win for both your company and your new employees. The WOTC is a program that benefits all parties involved.
If you find that administering this comprehensive tax credit solution is an interesting option, but you do not have enough time to manage the program you should seek assistance from the experts. Let the professionals guide you through the implementation of this beneficial program so that you can spend your time elsewhere.
Lower the cost of health insurance.
With the continued rising cost of health insurance, opting for an HSA or Health Saving Account has tax advantages for both your company and your employees. An HSA is a medical savings account that affords tax benefits when your employees are enrolled in a specific health plan. The money that workers contribute to the HSA is not taxed at the federal level at the time of deposit.
On your side of the house, your HSA contributions to your employees are also tax-deductible as a business expense, thus reducing your tax liability. This has the benefit of reducing your payroll taxes. The more employees you have that make HSA contributions, the greater your tax savings.
Hire a tax advisor.
It should go without saying, and you probably already know this but you need a qualified corporate tax professional. A financial advisor will cover all of your proverbial bases to ensure you are following the law. Your advisor is a go-to authority to guide your company’s financial future. They are trained to advise you on the best practices of tax liability reductions.
As you are searching for the best fit financial advisor for your business, ensure you ask the right questions for maximum gain. Once you have determined a selection of candidates, set up telephonic, online, or in-person interviews. You should feel comfortable speaking with the individual who will be working with you. After all, you will be discussing business matters on a routine basis. This is the person who will guide you in the event of an audit. And this is the individual who will put their expertise to good use to avoid an audit in the first place.
You would never leave your personal taxes until the last minute. Do not do that with your business taxes, either. Engage with professionals to reduce your liabilities and maximize your gains for the benefit of your business and employees.